DMM NE te &s, mS Fy of Pre, 8 mp £4 a p . STATE OF FLORIDA 4, ob, / AGENCY FOR HEALTH CARE ADMINISTRATION 6 Hens R¥ o UNM, STATE OF FLORIDA, AGENCY FOR SS HEALTH CARE ADMINISTRATION, AHCA Case Number Petitioner, 2005009479 vs. CHARLOTTE RESOURCES, JNC., a Delaware corporation, d/b/a THE MRI CENTER OF CHARLOTT. E COUNTY, . ECEIVE NOV 21 2005 Respondent. / » MeDERMOTT WILL & EMERY LLP ADMINISTRATIVE COMPLAINT The STATE OF FLORIDA, AGENCY FOR HEALTH CARE ADMINISTRA- TION [hereinafter AHCA or the Agency], by and through its undersigned counsel, hereby Giles and serves this ADMINISTRATIVE COMPLAINT against Respondent CHARLOTTE RESOURCES, INC., pursuant to §120.569 and $120.57, Florida Statutes fe (2005), and alleges: NATURE OF THE ACTION 1. This is an administrative action to revoke Respondent's health care clinic license, number HCC3685, for Respondent's failure to secure MRI accreditation within one year of its licensure for engaging in MRI services. JURISDICTION & VENUE 2. AHCA has jurisdiction pursuant to its regulatory authority under the Health Care Clinic Act [the Act], Chapter 400, Part XII, Florida Statutes (2005). In the event that Respondent requests a formal hearing in the manner required by law and AHCA EXHIBIT A ENBADEsyonne, HA thereafter refers the case to DOAN, the Division of Adminisirative Hearings [DOAH] will have jurisdiction pursuant to Sections 120.569 and 120.57, Florida Statutes (2005). 3. Venue for any formal hearing shall be determined pursuant to Rule 28- 106.207, Florida Administrative Code. 4, In the event Respondent requests an informal hearing (no dispute as to the underlying material facts), then the Agency will refer the matter to an informal hearing officer who wil] hear the matter by telephone conference as to any argument as to the application of the law to the undisputed underlying facts pertaining to revocation. PARTIES 5. AHCA is the regulatory agency responsible for the licensure of Florida health care clinics and for implementation and enforcement of the Act, including in particular the licensure of clinics engaged in magnetic resonance imaging (MRI) services. 6. CHARLOTTE RES OURCES, INC. [Respondent] is a Delaware corporation that owns, operates and is doing business as THE MRI CENTER, OF CHARLOTTE COUNTY (the Clinic]. Respondent's principal business address is 3358 TAMIAMI _ TRAIL, PORT CHARLOTTE, Florida 33952. Respondent’s mailing address is 1455 BROAD STREET, 4" FLOOR, BLOOMFIELD, N.J, 07003. The Clinic is located at 3358 TAMIAMI TRAIL, PORT CHARLOTTE, FLORIDA 33952. 7, Respondent and the Clinic are engaged in providing magnetic resonance imaging (MRI) services and at all times material hereto were and are required to comply with the Act. a NE NN ee Ah nes IRE FLORIDA HEALTH CARE CLINIC ACT 8. §400.991(1)fa) of the Act states that: “Bach clinic, as defined in 5.400.9902 must be licensed and shall at all times maintain a valid license with the agency.” fa 9, Because Respondent is engaged in magnetic resonance imaging (MRI) services, the following additional requirement of the Act is pertinent here: 400.9935 Clinic responsibilities. — (11)(a) Each clinic engaged in magnetic resonance imaging services must be accredited by the Joint Commission on Accreditation of Healthcare Organizations, the American College of Radiology, or the Accreditation Association for Ambulatory Health Care, within 1 year it after licensure. However, a clinic may request a single, 6-month extension if it provides evidence to the agency establishing that, for good cause shown, such clinic can not be aceredited within | year afier licensure, and that such accreditation will be completed within the 6- month extension. After obtaining accreditation as required by this subsection, each such clinic must maintain accreditation as a condition of renewal of its license. [Emphasis added, except as to title.] 10. The Act provides authority to the Agency to revoke a license, as follows: 400.995 Agency administrative penalties.-- (1) The agency may deny the application for a license renewal, revoke or suspend the license, and impose administrative fines of up to $5,000 per violation for violations of the requirements of this.part or rules of the agency. In determining if a penalty is to be imposed and in fixing the amount of the fine, the agency shall consider the following factors: (a) The gravity of the violation, including the probability that death or scrious physical or emotional harm to a patient will result or has resulted, the severity of the action or potential harm, and the extent to which the provisjons of the applicable laws or mules were violated. (b) Actions taken by the owner, medical director, or clinic director ta correct violations. . (c) Any previous violations. ’ (d) The financial benefit to the clinic of committing or continuing the violation, [Ensphasis added, except as to title.] 7 ONE ROE NE tly SE Een Oe Sn EE fee EEA eee THE VIOLATION iL. With the enactment of the Ifealth Care Clinic Act in 2003, the Legislature required then-existing clinics and any other clinics formed prior to July 1, 2004, to seek -. , and secure a temporary clinic license, resulting in the issuance of licenses with effective dates between March 1, 2004 and Jwy 1, 2004, As amended, the Act Tequires al] clinics established after July 1, 2004, to secure a clinic license pursuant to the Act. 12. Respondent’s Clinic constitutes a health care clinic as defined by the Act, and is subject to the licensure requirements of the Act. Respondent sought licensure under the Act for its operation of its Clinic. 13. Based upon the licensure application submitted by Respondent to the Agency for operation of the Clinic, in due course on or about February 20, 2004, the Agency issued a temporary clinic license, HCC3685, Certificate #4768, to Respondent, effective March 1, 2004. A copy of the cover letter dated February 20, 2004, and of that license, are attached hereto and made a part hereof as AMICA’s Exhibit “A.” 14, Based upon that same licensure application, in duc course on or about February 28, 2005, the Agency issued to Respondent a standard clinic license, HCC3685, Certificate #8587, effective January 26,2005. A copy of the cover letter dated February 28, 2005, and of that standard clinic license, are attached hereto and made a part hereof as AHLCA’s Exhibit “B.” 15. More than one year has passed since the Agency's licensure of the Clinic without Respondent having secured the required accreditation for providing MRI . i -. : . services. Respondent has not met the minimum Standards for continued licensure, contrary to and in direct violation of the express requirement of paragraph (11)(a) of ~ §400.9935 of the Act. 16, Respondent, through its Clinic, continues to be engaged in MRI services, unabated notwithstanding its failure to secure the required accredilation, © CLAIM FOR RELIEF 17. The Agency has considered the sanctions available to it under the Act, specifically including consideration of the factors set forth in §400.995(1) and determined that the facts and Jaw set forth above constitute a lawful and appropriate basis for the Agency to revoke Respondent's referenced license. 18. AHCA thus seeks revocation of the referenced license held by Respondent. Respectfully submitted this ID“day of November, 2005, Awe Tom R. Moore, Esquire AHCA Senior Attomey Fla. Bar No. 097383 Agency for Health Care Administration Palmer Building, HCCU, MSC #53 2727 Mahan Drive a Tallahassee, FL 32308-5407 (850) 488-0215 (office) (850) 488-5897 (fax) he NR he APS SNe Ne meee AS ON NOTICE Respondent is notilied that it has a tight to request an administrative hearing pursuant to Sections 120.569 and 120.57, Florida Statutes. Specific options for oy administrative review of the relief sought herein are set out in the attached Election of Rights form and explained in the attached Explanation of Rights form. All requests for hearing shall be made to the Agency for Health Care Administration and delivered to: Mr. Richard Shoop, Agency Clerk Agency tor Health Care Administration Building #3, MSC #3 2727 Mahan. Drive Tallahassee, Florida 32308 Please also firnish a copy thereof to the above-named AHCA Senior attorney who prepared and signed this Administrative Complaint (see address below signature). RESPONDENT IS FURTHER NOTIFIED THAT THE AGENCY MUST RECEIVE A REQUEST FOR HEARING WITHIN 21 DAYS OF RECEIPT OF THIS PLEADING BY RESPONDENT. FAILURE TO COMPLY WILL — CONSTITUTE AN ADMISSION OF THE FACTS ALLEGED KKEREIN AND RESULT IN ENTRY OF A FINAL ORDER BY THE AGENCY CONSISTENT WITH THE ACTIONS CONTEMPLATED BY THE AGENCY IN THUS PLEADING. CERTIFICATE OF SERVICE The undersigned ANCA counsel hereby certifies that a true and correct copy of the above and foregoing Administrative Complaint, together with its exhibits and with both an Election of Rights form and a form regarding the Explanation of Rights Under Section 120,569, F.S.A. attached thereto, has been served upon and to each of the following co-counsel for Respondent, both by facsimile transmission and by hard capy to the address indicated: (1) Lynn Adams, In-House Counsel for Respondent, CHARLOTTE RESOURCES, INC., by facsimile to (973) 707-1121 and by hard copy to her attention, c/o MEDICAL RESOURCES, INC., 1455 Broad Street, 4th Floor, Bloomfield, New Jersey 07003; and (2) Michael Austin, Esq., of McDermott, Will & Emery, LLP, by facsimile to (305) 347-6500 and by hard copy lo the referenced firm at 201 South Biscayne Blvd., 22™ Floor, Miami, Florida 33131-4336, on this 4 day of November, 2005. Tom R. Moore, Esquire AACA Senior Attorney Fla. Bar No. 097383 Agency for Health Care Administration Palmer Building, HCCU, MSC #53 2727 Mahan Drive - , Tallahassee, FL 32308-5407 (850) 488-0215 (office) (850) 488-5897 (fax) OME he SME ee rh rer e——e—e——e—e— “ ae U8 oS Oop. FURFIOAAGENEY FOR HEALTH CRE -OM ISTRATION ony JEB BUSH, GOVERNOR ; RHONDA M, MEDOWS, MD, PAAR, SE GR Any February 20, 2004 , Bi THE MRI CENTER OF CHARLOTTE COUNTY ; ; 3358 TAMIAMI TRAIL eRe PORT CHARLOTTE, FL 33952 rs Dear Director: The attached license is being issued for the operation, of your clinic. Please review it thoroughly to’ . i] . . . . " : . ensure that all information is correct and consistent with your records. If errors or omissions are noted, please make corrections on a copy and mail to: Agency for Health Care Administration ’ Health Care Clinic Unit, Mail Stop #53 2727 Mahan Drive, Palmer Building Tallahassee, Florida 32308 pency dor on Administration ' Division of Health Quality Assurance ee \ BIT ara Enclosure , cc: Ft. Myers Field Office ¥ ) Health Care Clinic Unit File a Vistt AHCA Online at www, fthe stette flus 2727 Mahan Driva » Mail Stop #53 Tallahassee, FL 32308 Tee OM ae OM ee Ler elo Lode ee Paw Yd DIY ; Deputy Secr ary, Division of Health Quality Assurance thi Thaptéx 400: quihdcized ized tp 7 autho i) Ww a on m ks “ ae ge SF = hoe eet “Be j Pa ne) pall ss ial S uy 03/01/2004 LICENSE BXPIRATION DATE: 02/28/2006 BEFECTIVE DATE File # 1424 Te 8 Wee si aN An R & I i ARs ne - a by Wg OFS (SE Hew 24a iy JEB BUSH, GOVERNOR ALAN February 28, 2005 THE MRI CENTER OF CHARLOTTE COUNTY 3358 TAMIAMI TRAIL. . ‘i PORT CHARLOTTE, FL 33952 : : Dear Director: The attached license is being issued for the operation of your clinic. Please review it thoroughly to ensure ; that all information is comect and consistent with your recards.. If errors or omissions are noted, please male os corrections on a copy: and mail to: . ie Agency for Health Care Administration Health Care Clinic Unit, Mai} Stop #53 2727 Mahan Drive, Palmer Building Tallahassee, Florida 32308 Tf you have ary questions conceming the issuance of this license, please contact Jackie Clawson at (85 0} 488-1365. : . You are encouraged to visit our website for timely updates on Health Care Clinic information, forms, and activities. This site is: . htip:// wwwithe state flus/MCHQ/Health Facility Regulation/HealthCareChinic/index. shtml, Jackté Clawson Health Services and Facilities Consultant Agency for Health Care Administration Division of Health Quality Assurance \ ; Enclosure m . EXyyair \ R! ? - ce: Ft. 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Docket for Case No: 05-004669